Skip to main content
11:00 am
♪ that is the name of the game. ♪ social security surplus, captioned by closed captioning services, inc. a fox news alert. we start with the biggest question in the u.s. and perhaps the world right now. is there a deal on the debt crisis. that the moment we are getting new apes. hello, and welcome to a brand new -- new answers. welcome to a brand new hour of america's news headquarters. i'm heather childers. >> glad you are with us. there is word that they may be close to a bipartisan compromise. the key requirement for avoiding a financial fallout from the august 2 deadline a couple of days from now and that is when the u.s. treasury says uncle sam is going to run out of money and must decide who gets paid and who does not. certainly an historic worst case scenario that many elected leaders in washington do not
11:01 am
want to happen on their watch. right now republican senators are preparing for an open closed door meeting to talk about the status of this possible deal. we have seen a display of political brinksmanship at its best or perhaps its worse depending on who you talk to. right now they are talking caucusly about a solution. >> there is no agreement that has been p made but we are optimistic that one can be reached but we are not there yet. >> no one saying there is an outright deal just yet. mike emanuel is live for us on capitol hill. been a change in attitude from senator reid in less than 24 hours even though the senate just voted down his own plan. why? >> well, heather, senator reided seemed to realize that the ship had kind of sailed on his plan and he recognized that the white house has been
11:02 am
neglecting with republicans and he has been involved in talks as well. they need a deal that can pals the senate and the house. we got this update from senator reid a short time ago. take a list. >> spoken to the vice president this morning. in fact, a couple of times. he is hopeful, of course, we have to be hopeful that we are close to agreement. this is based on new ideas and some old ideas. >> essentially we believe that the leaders are selling the details are potential plans to their membership to say this is what we are looking at. we need your support. and the bottom line is they are looking for the votes to pass because time is a wasting heather. >> gop senators are planning to meet behind closed doors. it was supposed to happen around 1:45. we understand that has been delayed.
11:03 am
do we and itminica we dissipate happening there? >> they just told our colleague trish turner the senate producer here that we are really, really close to a deal, we will let you know when we get there. he needs to bet buyin in his members and speaker reid needs to get buyin from his members and senator boehner as well. a senior gop source said eceptionly he is saying to his people look i'm going to fight for the best deal until the very end. >> what about the white house? one person left. what about president obama? what are they saying about all this? >> well, our friend and col leacolleague ed henry at the we house reporting that senior administration officials say a deal is not done yet. working the phone all morning long trying to nail down the final issue. still some issues pending out
11:04 am
there. as for indications about whether the president will speak at this one one official told ed that is putting the cart before the horse and so we are not there yet. >> amazing to watch all of this unfold. we appreciate it, mike. mike emanuel. >> thank you, heather. >> here is what we know about the potential deal on the table right now. it would raise the government spending power by a total of up to $3 trillion. the plan would also call for an immediate cut of $1 trillion in federal spending with $2 trillion or more in cuts to be determined later by a special committee with a deadline set for thanksgiving. >> and any debt deal getting hammered out in the coming hours or days will likely be a tough sell for leaders of both party pas. they will have to explain any compromises to their constituents of course, and here is senator lindsay graham. >> what do i tell people at home that say what did you do about getting us out of debt. i slowed down how much
11:05 am
detearoriation you add. instead of $10 trillion, we add 7. i slowed down the growth of government but you it grows every year. >> says that half of the congress in the republican house will have to be onboard for a deal to go through. senator mitch mcconnell saying both the house and senate are going to need bipartisan support. >> do you think that speaker boehner, he has to depend on nancy pelosi to get democratic votes over there in the house to get this passed? >> we have to get democratic votes in the senate as well. neither party has a hammer lock on the entire congress and we have to work together to get this job done for the american people. >> and despite any tough sell negotiators are cautiously optimistic. greg? >> the global markets set to open in just a few hours, keeping a nervous eye on capitol hill and after that a battered and bruised wall street will begin trading. the dow closing down for six straight days on friday.
11:06 am
finished its worst week since last up a. what will it take to ease investors' nerves. joining me, neil cavuto, anchor of your world. you have been on the hill and talking to a great many people there, congressmen and senators and so forth. what is your take on this potential deal? >> neil: well, i think there are two different audiences here. leaving aside the one that cobbles together democrats and republicans that com come toger on something approaching what we heard of these $3 trillion in savings over the next ten years. you do have another audience to win over and that is the investment rating agencies, the credit rating agencies like moody's and s&p and fitch. these agencies have already gone on record saying we need $4 trillion in cuts and that is a floor and this looks like for
11:07 am
all intents and purposes more like $3 trillion. the devil is in the details and whether some of the cuts are upfront or longer term but that is not going to cut it with ratings agencies that have already put themselves out on the ledge here and said we said $4 trillion. then the attention changes to them. will they accept that. will they say all right, we set $4 trillion, 3 trillion south better than nothing or do we take them at their word there could be a possible downgrade if it doesn't measure up. i won't get into the gobbledygook of the math they use. they say the very minimum they would accept is the $4 trillion figure. then the issue is if we still don't have a deal as of later on tonight, 6:00, 7:00, 8:00 when you start seg the first signs of futures trading
11:08 am
in securities in u.s. stocks and later on in asia, what have you, could be some concern are it looks like this might be falling through. remember, a short-term reaction to any deal is just that. keep in mind after the stock market fell close to 800 points in october 2008, greg, when we didn't get a tarp deal or tarp rescue through congress when president bush was in the white house then we hastily reconvened, got a new tarp deal, more to its liking just to try to prevent another selloff. we did prevent a one day panic but just a few months later the dow had lost close to 4,000 points. so, there is such a thing as a short-term reaction and a long-term reaction. and we don't even have a short-term deal right now. >> it is funny how a near market crash can concentrate the minds of politicians in washington almost overnight. look, help me out here.
11:09 am
didn't moody's say that it would not downgrade from triple-a but we haven't heard from s&p and why would there be that disparity? >> well, moody's didn't say outright that it would not ongrade. it sort of set the parameters here saying you know what would be real serious spending restraint, you know $4 trillion over ten years is sort of like that benchmark as i alluded. now, you are quite right, they have been very, very cautious in saying what they would do in the event we don't get that figure. they have made it very clear, s&p and other agency that gets a little less fanfare fitch investors that $4 trillion is a figure you hear a great deal. even lost in that thought and i find this interesting, greg, is the details and layout of those spending cuts. if they are more outer term year cuts the markets might scratch their head as are many here, many republicans in
11:10 am
particular and saying wait a minute, we agreed to something where the onerous cuts are coming in the future years, obligating future presidents and congress to do what this president and this congress might not do up front. they might step back and say this isn't a deal. we live in a town and an environment, i don't know about you, greg, i don't know what i'm going have for breakfast tomorrow morning. it is one thing to start laying out plans nor what you are going to do ten years from now. therein lies the risk in any ten year deal. great on paper might make sense in paper. might not sell in reality. >> neil cavuto on in less than four hours on your world. a special edition of your world, 4:00. well, the showdown over the debt crisis in washington is
11:11 am
reaching all the way to our neighborhoods. main street closely watching the debate raging in the capitol and here is why. the ratings agency moody's a considering a credit downgrade of 162 communities across the country and this could lead to a bigger bill for taxpayers. senior business correspondent brenda buttner is anchor of "bulls and bears" and joins us. bring it home for us like maybe kitchen table politics. how is this going to affect people sitting at home around their kitchen table? >> it is quite literally kitchen table politics. isn't that where you kids do their homework? construction of schools roads. anything that municipalities take credit for, all of those may cost more. essentially what is happening is these rating is agencies that neil talked about are now not just looking at the
11:12 am
national level, they are going one level down to the local governments and the problem is these local governments can't do like the national government. they just can't print money. and so they have been forced to cut offices tortion raise some taxes. and now on top of all of that, these credit agencies may take their ratings down from triple-a. now, you know when you have a credit rating or credit problem that essentially if your credit goes down you have to pay more to get credit and essentially that would happen to these municipalities. and it is interesting because though many of them have gone to private investors such as california, many of them have some surpluses to cover this. it doesn't really matter because moody's if they downgrade they will be looking at how much these individual
11:13 am
localities depend upon federal revenue. and if they depend a fair amount on it, we can see that this whole debt ceiling is affecting the federal government so they see this trickle down effect which may or may not be fair. but it is definitely what may happen. one thing i did want to say is some of the municipalities are are just going on what is called a credit watch. that does not mean they will be downgraded. but others are facing more dire consequences. >> and brenda, what about the housing market? how will that be affected by all of this? >> the housing market, it is kind an under the radar story but i have been taking a look and many contracts that had been made in the past month or so are falling apart and the reason is that people are, you know, home sellers, home buyers
11:14 am
are saying we are nervous about interest rates. and that is a direct affect of what is going on in washington because the concern is interest rates go up, if they go up, buyers are saying why? why buyin something, why not rent? we have seen a record number of housing contracts just fall apart. and that has been an unintended consequence of all of this washington wheeling and dealing. >> wheeling and dealing it is and t does continue. thank you very much, brenda. we appreciate your insight as always. thank you you. >> thank you. >> we are awaiting a meeting of republican senators. this is very important, on the status of the tentative debt deal and one of the people who will be attending that meeting is our next guest, republican senator mike lee of utah is a member of the? thesenate tea party caucus. thanks for taking a moment i know it is a busy day for you.
11:15 am
i realize nothing is in stone just yet but the frame work is known. what is your opinion of this so far? >> well, first of all, i want to say i'men couraged by the fact that we moved the debate in a meaningful wait in the last six months. six months ago there were people in this town talking about the need for a new stimulus package. now, we are talking about the need for a new balanced budget amendment and the need to cut trillions of dollars of spending over the next ten years and i'm certainly happy about that. i said from the beginning sins before i took the oath of office i will not support an effort to raise the debt ceiling until we pass a balanced budget amendment. it does not appear that we will be able to pass a balanced budget amendment in time for this round of debt limit increase to take place. as we take on long-term debt we need to have a long-term
11:16 am
solution and the only way to achieve that is by amending the constitution. >> if the balanced budget ameantment is not a part of this deal, would you still vote in favor of it? >> no, like i say, as i have told my constituents. >> that is a deal breaker. >> i will not support it because again we don't have any business iraqi the debt limit, taking on new debt to the tune of almost 3 trillion north dakota one fell swoop. a debt that will be on our books for far more than a decade but debt that will be assumed and money that will be spent in the next two years. unless there is a comparable long-term solution. and you can't have that with simple statutory spending reforms because as we have seen in the past congress has a way of wading its way out of those statutory reforms. >> i understand that you want this balanced budget amendment to be part of the deal. senator john mccain, highly
11:17 am
esteemed in the party, he said this and i think he was talking about you and maybe a couple of others. it is unfair and bizarre. less than two hours ago, senator, he repeatd that on the floor of the u.s. senate. his reason is this, the balanced budget amendment requires 67 votes in the u.s. senate and a lot more thought and a debate needs to take place. and we can't do that now under a severe deadline. are you telling me he is wrong about that? >> well, what i'm saying is that as i explain in my book the freedom agenda, we cannot fix this problem without permanent structural spending reform. and look, i like john mccain. i consider him a friend and a colleague and i respect the fact that he has on many occasions taken positions that have at times isolated him from other members of his party. and he has stuck by his guns
11:18 am
even when disagrees with other people and i respect that. and from time to time all of us go through that and what i'm saying is we need a permanent solution to a permanent problem. >> look, the art of compromise is indemmic in washington, d.c. and it is the only way that anything can ever get done and you would appear to have gotten three quarters of what your party was demanding. the president initially wanted a debt ceiling increase with no cuts whatsoever. you won on that. shouldn't you consider that as part of the equation in voting yes for this teen ittive deal? >> well, no, because as you heard neil cavuto say just a few minutes ago, most of the cuts that are now being discussed are cuts that will be made over a 10 or 15 year period. most of the actual cutting will take place while a future congress is in power. we will have another congress sworn in in january of 2013 and
11:19 am
another one in janry of 2015 and january of 2017 and so south. the only spending that we actually control in this congress is spending that occurs between now and january 2013. and there is very little cutting that is on the table right now to occur right now. the only way you mandate future cuts, the only way you make sure that the perpetual deficit spending that we have been experiencing doesn't continue in perpetuity is through constitutional amendment. >> you have been talking a lot about what the people want. i wonder if perhaps you are mistaken and if your party's actions have come at considerable political expense. i looked at the recent cbs poll that found 71% of the people disapproved of your handling of the debt negotiations. half of the president's overall approval rating. isn't it likely that you may win the debt battle but lose the war of public opinion? >> i think the exact opposite is going to happen. 75% of the american people
11:20 am
wanted a balanced budget amendment. i was elected based on that mandate and what happened in 2010 is just a prelude for what is going to happen in 2012. >> you keep saying that number, senator but that number is in isolation. when that number is factored into a debt ceiling deal that number drops considerably. >> to 66%. 66% of americans support the cut, cap balance approach. intermediate term statutory spending caps and a balanced budget amendment. >> senator mike lee. thank you very much for taking your time. we will let you get back to that meeting which apparently is imminent. thank you so much. >> we are following the developing story out of washington right now. a possible 11th hour deal over the sent ceiling but there are still hangups. we will take a closer look at what is on the table. >> and other news as well, out of syria.
11:21 am
horrifying accounts of death and violence. army tanks taking a city by siege. details coming up. and is casey anthony getting mental health treatment? the new reports about her condition. looking good! you lost some weight. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain tend to weigh less than those who don't. multigrain cheerios... five whole grains, 110 calories. constated? phillips' caplet use gnesium, an ingredient that works more naturally wityour colon than stimulant xatives, for fective reli of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna... thanks. ♪ [ cat meows ] ♪
11:22 am
[ whistles ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care abt and save money with multi-policy discounts. are you getting the coverage you need and the discounts you deserve? for an agent or quote, call 800-my-coverage or visit a living, breathing intelligence that's helpi drive the future of business. in here, inventory can be taught to learn.
11:23 am
♪ machines have a voice. ♪ medical history follows you. it's the at&t network -- a network of possibilities... committed to delivering the most advced mobile broadband experience to help move business... forward. ♪
11:24 am
welcome back. american troops in afghanistan worried about how the debt talks standoff could impact their families with the deal doesn't happen by tuesday and federal employees stop getting paid. soldiers asked admiral mike mullen if they will still get
11:25 am
their pay checks. he said honestly he just doesn't know what will happen. mullen was meeting with service men and women at bases in southern afghanistan. >> but the money does seem to be flowing in iraq and in ways that are taking the american taxpayer for a ride. a new report by a special inspector shows that contractors are overbilling the government by as much as 12,000%. in one case a sub contractor charged the pentagon 900 bucks for a $7 switch. and the audit comes as violence in iraq is surging. steve centanni is live for us in washington. so steve, first, what about the
11:26 am
allegations that iraq is not any safer than it was a year ago? >> well, heather, that is the claim of the inspector general for iraq reconstruction in a scathing report just released he says "iraq remains an extraordinarily dangerous place to work. it is less safe in my judgment he says than 12 months ago ." the report says 15 u.s. soldiers were killed in iraq in june, making that the bloodiest month for the u.s. military in two years. there has also been an increase in rocket attacks and assassination attempts. also call this is summer of uncertainty in iraq with a deadline looming in september for a u.s. pullout. >> we have no idea how many forces might be able to remain and see the risk of increased violence not just to americans but to average iraqis and, indeed, the stability of the government of iraq. >> and there have been talks over troop levels but no agreement.
11:27 am
heather? >> and what about the allegations of contractor abuse? >> the report says a contractor named anheim,ing lly overbilled the government. says they billed $900 for a control switch valued at $7. $0 for a piece of pluming equipment valued at 1'." when contacted by fox news the company said these conclusions are false without legal or factual justification and unfounded. every purchase was the result of a competitive bidding process reviewed and approved in advance by the u.s. government. and actually says they saved taxpayers millions of dollars through their contracts. >> i heard about markups in prices but that is quite a markup. steve centanni reporting. >> you bet.
11:28 am
right now we are learn new details about a tentative debt ceiling deal being hammered out in washington. nothing set in stone yet but the last minute wrangling may be settled soon. there are two major conditions that could help lay the foundation for a compromise. the tentative agreement would fund the government through the 2012 elections and into 2013, a demand by president obama and the debt ceiling could be raised 2.1 to $2.4 trillion die pending upon the amount of corresponding spending cuts. that is just the beginning. here to help us understand the political dynamic at work, our republican pollster adam geller. a former pollster for chris cristie and jam green. this is complicated and confusing and thus may take awhile for the winners and losers to emerge from the
11:29 am
smoldering political rubble, if you will. do you see one side gaining over the other? republicans over democrats and democrats over republicans? >> i think it is very clear that republican ares and particularly the tea party members have a lot to be happy about. no tax increases for example. significant cuts in spending. and at least the dialogue and discussion about a balanced budget amendment. >> you saw the poll, 71% of americans don't like the way the republicans have been handling this thing. >> and here is why because it comes to the loser question. the big loser is president obama. here is why. >> he is not a loser in the cbs poll. he did much better. >> he is dem goin dem ma going. >> it may be working. >> adam, talking about president obama -- >> the approval rating is 40%. people know president obama and they are not familiar with this issue. they are frustrated with both sides but the fact is that they
11:30 am
are very little familiarity with the issue and very much familiarity with the president. 40% job approval. lowest job approval to date. >> it is true the president happen tee be doing a little better on this particular issue but boy, his overall job approval ratings have plummeted to an all-time low, 40% under gallup. >> i agree with adam that the american people are frustrate. >> you agree with adam? >> thank you. >> that the american people are frustrate. >> so everybody comes out a loser. >> how much does it break your heart to watch that soldier who should be focused on protecting himself and his mission to be asking that question and i don't think that is going to be lost and i independents. >> is the american so actual frustrate any whole thing that it is a position on both your houses? >> it is a pox on bolt o both e houses but i think president obama comes out ahead. looking at the deal on the table right now we are not going to be revisiting the
11:31 am
debate in three to four months which is a big part of what speaker boehner and the tea party. >> adam is saying that the president lost on two major issues he wanted. revenue increases. a straight up or down on debt ceiling and he lost on both. how can he be a winner? >> we will have a conversation on revenue increases on the second half of the plan the deal that is currently being discussed and i think there is a lot of wrong information throughout. at the end of the day the fact that we will get a deal is smack in the face of so many of the tea party representatives that. >> i'm glad you brought that? >> take it or leave it. >> the republican party fractured here primarily by the new conservatives. 22 defections on friday in the boehner bill that went down in flames and the intraparty squabbling fractured to say the least. does boehner come out of this thing a whole lot weaker? >> no, because at end of the
11:32 am
day boehner is doing what he needs to dominic do to keep thy together as possible. november 2012 is what unites the caucus at the end of the day, period, end of statement. >> the president's senior advisor david plouffe today still talking about a tax increase and that is way off the table. in fact i will quote him. the president is for closing tax loopholes and making sure millionaires and billionaires contribute. time to give up the ghost on that? that is not going to happen. >> the special committee will be looking at a balanced approach that will include revenue and that is a concept that the american people support overwhelmingly. >> the bipartisan committee will never go with tax cuts. it kicks in the so called triggers of automatic spending cuts, not tax hikes.
11:33 am
you know that is not going to happen. >> you know the triggers will be dramati dramatic to get the republicans on board it isn't going to have fortunately for us some of these very fringe crack pots who are willing to throw our cab pots under the bus. >> first of all, again, stop with the political rhetoric. >> this isn't political rhetoric this is the reality of what the american people have said. >> you are supporting you say revenue but that really means higher taxes. david plouffe and it sounds like you are supporting higher taxes and that is no a go. >> and the overwhelming majority of americans understand we have to have a combined approach. has to be spending cuts and combined with tax revenues and that is the reality republicans have deny. >> in tax hikes in a slow recovery coming off of recession facing a double dip. >> yeah. >> if tax hikes are are bad for that aren't spending cuts also because that withdraws revenue
11:34 am
from the marketplace? >> here is what you do. spending cuts are going to be helpful because they will improve the markets. >> takeing that money away from the marketplace. >> not punishing job creators and allowing them to hire and create new taxpayers and new tax receipts are going to give you the revenue you that you so crave. >> got to leave it at that. i'm afraid i'm out of time. i'm getting a hard hook over here. the producers i have to live with them. >> they stopped us from talking about jobs and that is why they will be held accountable. >> jehmu green, you got the last word. i knew you would. good for you. heather? >> closed door meetings going on right now inside the capitol. party leaders saying we are "very close to a debt deal." a live report on the new information just coming out. and exactly two years to the day of their capture brand new information for you from the family of the two hikers still being held prisoner in iran. we will have more on their
11:35 am
fate. naturals from purina cat chow. delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life. our girl's an architect. our boy's a genius. we are awesome parents! biddly-boop. [ male announcer ] if you find a lower rate on a room you've booked, we won't just match it. we'll give you $50 towards your next trip. [ gnome ] it's go time.
11:36 am
11:37 am
a fox news alert. right now the wheels are in motion for reaching a bipartisan deal on the debt crisis. new signs that a tentative agreement is in the works. a mood of cautious optimism now taking hold in washington with the august 2 tedline just two days away but nothing is certain as yet and the obama administration emphasizing some big issues still have to be
11:38 am
resolv chief white house correspondent ed henry live at the white house. both sides feeling like a deal is shaping up up? >> i got off the phone with a senior democratic senator who said everybody seems optimistic about a deal but in his words i don't see a twinkle in harry reid's eyes yet. and this senator was basically saying look, everyone is talking up a deal but it has just not been hammered out. we know the proceed outlines. $1 trillion in spending cuts up front and largely agreed both sides on a special committee of congress to hammer out up to $2 trillion more in spending cuts. but how do you enforce that second round of cuts and make sure there is accountability here and not just talk and promises up front. gene sper ling was on "fox news
11:39 am
sunday" saying this is the key sticking point. >> he supports having some kind of a straight jacket on all of us that says if you don't get your work done there will be action taking that make we do get deficit reduction. here is the key. whatever that enforcement mechanism is, it has to give both sides an incentive to compromise. >> now, one part of that straight jacket would be our taxes on the table. it is pretty clear from the negotiations what we are picking up that in the short-term taxes are not on the table but democrats led by the white house are trying to make sure that taxes are on the table for the second round of cuts down the road that the special committee of congress would have to report on. not just entitle programs but potentially tax changes as well, greg. >> ed, i think it was kevin mccarthy house leader took a hot at the president and said look, he is sitting on the
11:40 am
sidelines and tweeting about this, i'm paraphrasing. but the white house have been involved in the talks. >> mccarthy saying the president is sitting on the sidelines and tweeting. he was saying call your president but tweet them as well. obama campaign slightly embarrassed by the fact that as they pressured the followers to say tweet the president. some of the followers got upset and thought they were being spammed. he might have lost a handful of followers here and there. today the president is clearly engainled in the final stage. i have been told that vice president bide season taking the lead and working the phones with democratic and republican leaders all morning today to try to bring this to a resolution. pressure on all sides here because of the markets that open in asia tonight and the u.s. is markets that open tomorrow but also personal pressures. senator begich just tweeted to
11:41 am
his son i'm sorry i'm not there for your birthday, i'm here in the middle of this debt crisis. >> ed, great having you here. ed henry at the white house. thank you. >> the outcome of a possible debt deal involves more than huge numbers. could be a game changer politically especially as the cam papes for next year's elections heat up. who will be the political winners and the political losers? here to break it down with us, john fund, the senior editor for "the american spectator." we heard ed talking about twitter specifically. the president lost 36,000 followers on twitter as a result of this. his overall numbers about a 40% approval rate. who really is going to win or lose in the battle. begin first with the house. >> whenever washington has a big fight both sides lose in the it short term. the presidents it numbers have gone down to 40% approval. the numbers for congressional republicans have gone down.
11:42 am
people don't like conflict and they respond negatively to that. in addition, you are probably going to add on to this a compromise deal that is going to make both conservatives and liberals unhappy. i think dissatisfaction is going to go up all the way around. the white house cannot look at this as good news. >> who do you see more the winner with a compromise? he mentioned that harry reid has no twinkle in his we right now. >> one of the winners would be the senators up for reelection in 2012. they know there is an anti-washington mood and they want to get this off the table. if you can extend the debt limit beyond the 2012 election so they don't have to refight this in 2012 before the election that is good for them. i think house republicans will be happy because even though a lot of tea party people will say this is not what we wanted. they can go back and say look
11:43 am
where the president started. in april i want revenue increases, i don't want any spending cuts, i just want a clean debt limit and president had to retreat on most of us. in the the end the republicans lost some ground with independents for looking ob obstinate but the president lost even more ground for looking weak. >> do you think because of what happened with the back and forth bickering that ultimately a lot of people already sealed their fate with the voters? >> the next step after this is going to be important. we have to see whether the rating agencies downgrade u.s. debt. under normal circumstances if we were not the reserve currency of the world and a super power we would have been downgraded a long time ago. our debt has skyrocketed in recent years. i'm sure the white house will say if the republicans hadn't raced this ruckous we wouldn't
11:44 am
have had the downgrade. and i'm sure they will say it is your spending that led to this downgrade. >> and we talked about that prior to the show. >> sure. >> and the $3 trillion being kind of the magic number as to whether nor not we would be downgraded but there is a difference being downgraded and defaulting. >> and one of the kif differences is as henry pointed out. how much assurances would the market have that the spending cuts with take place. >> we had two previous deals. one under president regan and under another president bush where they said we will have the spenting cuts and the spending cuts never materialized. the enforcement mechanism. watch what a lot of people in not what they say. >> that is good for everyone, thank you. thank you very much. >> thank you. >> we are waiting word right
11:45 am
debtn an agreement on a debt teal. deal. party leaders saying they are close. we will hear in a democratic and republican lawmakers on what could make or break the deal. just a programming note. tune in for a special edition of your world with neil cavuto at 4:00 p.m. eastern time live from capitol hill only on the fox news channel. and tonight at 9:00 p.m. eastern on the fox business network. i have copd. if you have it, you know how hard it can be to breathe and what that fes like copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms... keepinmy airways open... ...a full 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintence treatment that does both. and it's eroid-free. spiriva doesot replace fast-acting inlers for sudden symptoms.
11:46 am
tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and call your doctor right away if your breathing suddenly worsens,... ...your throat or tongue swells, you get hives, vision changes or eye pain,... ...or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps meeathing with copd is no small thing. ask your doctor about spiriva.
11:47 am
11:48 am
and this just in. we are getting word that house and senate democratic leaders are meeting imminently to
11:49 am
discuss the possibledale deal. possible. earlier we heard from senator mike lee, republican from utah for his take on the talks and the potential deal shaping up. let's get a democratic congressman's view as well. robert andrews from new jersey. thanks so much for joining us. >> thank youion heather. >> do you have any insight you can provide as to what is happening at this moment? >> i think we are on the way to a good agreement that will help the country put jobs back in the picture. >> and you have worked hard actually that is one of the things that you have done in new jersey to create jobs. how will this deal, the possible deal that we are talking about right now help americans on-the-job front? >> a lender who isn't sure what the interest rates are going to be isn't going to lend money. an entrepreneur who isn't sure what he or she will borrow monitoring p any at won't borrow. then jobs don't get created and i think stability in that area of our country will create
11:50 am
private sector jobs that the country so badly needs. i think we are on the way, heather, to that kind of agreement. >> and the sticking point right now seems to be i think a term has been used, the trigger, how can we guarantee that additional cuts will be made when they need to be made. the date is being given around thanksgiving,/december. is that the sticking point that you still have as well? diddle be a sticking point for -- it will be a sticking point for everybody. there is not an audience or network in the world that likes this, if they set up nothing and we don't get deficit reduction as a result of that then the democrats are going to have to seek at social program cuts automatically. but the republicans have to look at defense cuts automatically and think you have interviewed a lot of people and i think if you ask 100 democrat democrats if theyt
11:51 am
social programs cuts you get about 100 saying no and if you ask 100 republicans saying do they want defense program cuts you have 100 saying no. the idea if that is what is going to happen is nothing happens something will happen. i hope what happens is $2 trillion worth of deficit reduction that will be good for the country. >> and we are talking about in terms of that trigger that it would affect more of the defense areas of cuts and not so much the social program. >> i'm not so sure about that. first of all, there is no numbers out there. my understanding it would be proportionate in respect to their area of the budget. i think it would be even handed and balded in that bay let's talk more about that balance plan and you have come out and spoken against the balanced budget amendment and said that you don't think that is possible and it wouldn't happen and wouldn't pass the senate. compared it to being, what, a
11:52 am
center fielder for the yankees, i think. >> i said the balanced budget amendment had about as much chance of getting through the senate as i did playing center field for the yankees. i would still like toe try out but i don't think i'm going make it. i'm for a balanced budget. i'm just not for a balanced budget amendment. it simply says somebody else at some time in the future needs to make the hard decisions to balance the budget. i think we in the present should make the hard decisions to balance the budget rather than just punt to some other people down the road. >> is a lot of that punting being done based on elections coming up do you think? and be truthful about this, is that what people really are more concerned about? >> a lot of people are concerned about that but i think there is enough of us willing and ready including the president and leaders willing to say let's cast the vote that a lot of people won't like because we think it is right
11:53 am
for the country. and i think you will see that vote cast around here in the next 46 hours. >> what will you say to your constituents as we wrap up here if this deal is not met and not done in time to avoid a default? >> well, i would say to them i'm cboing to keep working until it is. we have a responsibility to pay the country's bills and get the economy back on track. i'm not leaving until that is done. >> time for one more question. if you could just kind of succinctly talk about a couple of possibilities you discussed in terms of ethanol products, oil companies doing their part to help solve this and also a surtax on millionaires. >> i think that the ethanol subsidy is one of the worst things we have. we pay farmers to sell corn to ethanol companies to produce gasoline that is more expensive than regular gasoline and pollutes more and raids the public treasury at the same time. that is a crazy loophole that i
11:54 am
think most americans don't want to see us have. those have have done well in america should do well by america. i don't think there is anything between ask people making more than a million dollars to pay a little more to the debt and get us out of this. i also think social programs and defense and bureaucracy should be cut. but to solve a problem this big you need contributions from all corners and that is what i'm willing to support. >> but you are okay with no new taxes in the specific plan being debated right now. the possibly compromise. >> there is no taxes in the first part of this and i would rather there be but there isn't. i can live with that. the second round here which is the special committee will recommend some combination of spending cuts and or revenues and i think that is the way to go. >> we are out of time but i he want to talk to at some point exactly who that special committee is going to be and how it will be different than the gang of six. we will save that for another
11:55 am
bay it is guaranteed to get a vote on the house and floors. that is what is different. >> we'll me. >> thank you for your time. thank you. >> thank you, heather. >> the latest word we are getting now is that democratic leaders from both the house and senate are meeting in nancy pelosi's office imminently. and so cameras are not particularly welcome at this thing so don't expect any sound bites from inside that particular meeting but our prow producers and reporters are there. >> why wouldn't they invite our cameras? >> i don't understand it. what happened to transparency. >> i think somebody ran on that. >> i foregot that. >> brand new word from a round on the fate of two americanju hikers held for more than twoen years. the two gentlemen on theasiol . gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic."
11:56 am
[ female announcer ] phillips' colon health. ... [ male announcer ] where'd you get that idea? how'd you learn to do that? what'd you use? every project we finish comes with a story built-in. it's how our rough ideas become "you did that yourself?" so when we can save more on the projects that let us fix, make, and do more... that just makes the stories even better. more saving. more doing. that's the power of the home depot. add some style to your sink, with this moen banbury faucet for the new lower price of 79 bucks. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah!
11:57 am
[ male announcer ] hurry in to crabfest at red lobster. the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or sn crab and crab butter shrimp. [ jon i wouldn'tut it my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea fd differently.
11:58 am
>> gregg: welcome back. freedom could be under way on two people locked up in iran. their release could come by the end of this week. they were arrested after crossing into iran from iraq. today the last session and case carries the possibility of execution. lauren green has more. >> it was hoped the two american hikers would be free men today but an iranian court will announce the fate until later this week. in a statement released to the
11:59 am
media the family said we pray the iranian authorities will show compassion to shane and josh and we ask everyone that cares for them is beseeching the grace of god at this time. they were arrested two years ago to the date as they hiked in the region of iraq near the iranian border. they were changed on charges of espionage which they deny. sara shourd was released a year ago for medical reasons on $500,000 bail and will not go back to stand trial. on friday, family and friends rallied in new york ahead of today's trial. they have declared this week a week of action and urging people to show their support for the two men who could face many more years if convicted. complicating the issue, u.s. doesn't have directed relations with iran.

FOX News Sunday With Chris Wallace
FOX News July 31, 2011 11:00am-12:00pm PDT

News/Business. An analysis of top newsmakers and events. (CC) (Stereo)

TOPIC FREQUENCY Us 14, U.s. 12, Washington 10, Heather 8, Boehner 6, Iraq 5, Obama 4, Neil Cavuto 4, Moody 's 4, Spiriva 3, America 3, Mike Lee 3, David Plouffe 2, Steve Centanni 2, Brenda 2, Reid 2, S&p 2, Purina 2, Yankees 2, Adam 2
Network FOX News
Duration 01:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Port 50003
Video Codec mpeg2video
Audio Cocec mp2
Pixel width 720
Pixel height 480
Sponsor Internet Archive
Audio/Visual sound, color

disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 7/31/2011